<p>Since I started at UA, the price of a room in a 4 bedroom suite has increased around $1800 for two semesters. In economics, there are a couple different ways to combat demand being higher than supply. One way is to supply more. As dorms take awhile to design and build, this is more of a long-term strategy. In the short run, it is easier to decrease demand by increasing prices. The side benefit of increasing prices is more revenue that can in turn be spent on building maintenance, activities, more staff, etc. While UA could keep prices low and build more dorms or simply subsidize the housing costs of selected students, usually graduate students, it has chosen to compete with the local market.</p>
<p>To think that 15 years ago, UA’s housing prices were below market rates and the university was offering a promotion where if one lived on-campus their first two years, they would get free on-campus housing for their next two years.</p>
<p>My younger son moved off campus for his junior year and the cost ends up being a bit less, but not a lot less. He graduates in May, but I still have to pay for June and July’s rent. </p>
<p>I wonder if the cost of the super suites will cause more to want Standard Doubles? </p>
<p>While the cost of the super suites is high, it’s not unusual. My sister pays more than that for her kids’ suites housing. Nicer on campus housing is expensive. </p>
<p>BTW…in another thread it’s been mentioned how messy our kids are in the dorms. Don’t think that kids living like pigs doesnt’ have a effect on prices. The kids aren’t caring for the places.</p>
<p>The other problem with increasing capacity is that if demand drops, then there is excess capacity that is costing resources that are not being used. It’d cost the school a lot to build enough dorm rooms to meet all current demand and then wind up back in a situation where they’re offering free housing to fill the costly buildings.</p>
<p>But when I saw the price after hearing all the panic about recontracting, my first thought was, “Hmmm, I wonder if this isn’t a strategic move to decrease demand.” </p>
<p>I thought the lease I signed for son for next year was a good deal compared to the $8800 costs, now, it’s a GREAT deal.</p>